Answered

At the beginning of the period, a company reports a balance in office supplies of \[tex]$500. During the period, the company purchases an additional \$[/tex]3,000 of office supplies for cash. By the end of the period, only \[tex]$750 of office supplies remain.

Record the period-end adjusting entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

\ \textless \ strong\ \textgreater \ Journal entry worksheet\ \textless \ /strong\ \textgreater \

Note: Enter debits before credits.

\begin{tabular}{|c|c|c|c|}
\hline
Event & Account & Debit & Credit \\
\hline
1 & Office Supplies Expense & \$[/tex]2,750 & \\
\hline
& Office Supplies & & \$2,750 \\
\hline
\end{tabular}



Answer :

GinnyAnswer
To record the period-end adjusting entry, we need to account for the office supplies that were used up during the period. Here’s a step-by-step breakdown:

1. Initial Balance of Office Supplies:
The company starts with an initial balance of office supplies worth [tex]$500. 2. Purchases During the Period: The company buys additional office supplies worth $[/tex]3,000 during the period.

3. Ending Balance of Office Supplies:
By the end of the period, the company has [tex]$750 of office supplies left. 4. Calculating the Used Supplies: We need to find out how much office supplies were used during the period. The formula for that is: \[ \text{Used Supplies} = (\text{Initial Balance} + \text{Purchases}) - \text{Ending Balance} \] Substituting the values, we get: \[ \text{Used Supplies} = (500 + 3000) - 750 = 2750 \] 5. Journal Entry for Used Supplies: - Debits: Office Supplies Expense (to recognize the expense of the supplies used) - Credits: Office Supplies (to reduce the balance of office supplies) The journal entry to record the used office supplies at the end of the period is as follows: \[ \begin{array}{|c|c|c|c|} \hline \text{Event} & \text{Account Titles and Explanation} & \text{Debit} & \text{Credit} \\ \hline 1 & \text{Office Supplies Expense} & \$[/tex] 2,750 & \\
\hline & \text{Office Supplies} & & \$ 2,750 \\
\hline
\end{array}
\]

This journal entry properly adjusts the accounts to reflect the office supplies used during the period.